The Courier News from Blytheville, Arkansas · Page 5

WEDKKSDA1', ••FEBRUARY' 21, 1040 J. P. And Two Partners CQURIKK Entry Of Finn Into Trusl Field Seen As Logical • Step HV JOHN T. F1,VNN NKA Service SlalT Writer The iimioimcemenl that J. P. Morgan and Co. would shift from the status of a private bank to (he corporate form is n logical step in adjusting the firm's business lo thc new Federal laws governing banking. After April 1, tlie firm which has ijccn a private partnership since its inception will become nn incorporated tank like any other. 'I he explanation of tlie move will be found iu the following facts: J. P. Morgan and Co. curried on for ninny years a dual business ! —the Investment banking business , ns underwriters, and u general hanking business. Few people out-1 side linanclal circles thought of i the Morgan house as n bank like ' any other bank, taking deposits ami being a general deposit and discount banking business. Its depositors were few and chiefly large corporations whose security business II handled. The banking business was carried on as a feeder for the security business. FIRM ALWAYS WORK GO IN SECKET This was always done in the form of a partnership, thus enabling live Morgan house to avoid bank examinations, reports and other regulations nnd working in with thc film's traditional secrecy. However, In 1S33 the Gluss- Stengal Dill was passed, forcing various tanking reforms. Among other things 11 prohibited persons carrying on a commercial banking business from engaging in security underwriting and distribution and subjected all bunks, including piivnte ones, l-o a series of regulatory measures which forced the Morenn firm to submit to examinations and to make reports like- any other bank. This compelled the firm to make the difficult decision as to whether it would continue as a bank or as an underwriting house. It met the difliculty by remaining as n hank but sponsoring the formation of another ami separate company—Morgan, Stanley and Co.— 10 cany me security business. It is incorporated. . The funds were supplied chiefly by the Morgan partners. With the, security business .thus divor.eed nnd the secrecy of' tut private bank gone;, there was no longer the, same need lor continuing tiie partnership form of the bank. J.OW IN'COittE TAX NOW IiMI'OSSlHU: But another important advantage was goi\e. Thc partnership form was a great aid to the Morgan partners in escaping at times by legal means income taxes. A Inw passed during the Coolld c regime enabled partners, whenever a new partner entered tlie linn or left it, to close its balance sheet and list as realized losses decllirs in security holdings even though ilie secuiities were riot sold. It fell out that the firm took in several partners when market prices were low; thus it. was nbtc lo list as rcnlteed (h c actually n realized losses on securities. This is no longer important since thc most profitable part of the buii- «ess Is in die new underwriting ilrin, Morgan, Stanley and Co. NOW CAN CONDUCT THUST HUSINESS Aside from these considerations there is no other immediate importance lo be attached to the move, as was supposed when thc announcement was made. It will enanlc (lie firm to conduct a tru=l business which w (|[ compensate ior any other disadvantages it limy .-.iiffcr. It may have a bearing on the possible retirement of J. p. Morgan himself from thc business or certainly from active participation in it. It is understood in Wall Street that, hc has been contemplating this step lor some time. It (s also wild that hc will, if he retires, probably spend most of his time In England. The new firm will, of course continue to hold Us interest in Morgan Grcnfell and Co., and in Morgan and Co., investment bnm:- <•"••'. m London ;md Paris respsc- '!*'• But the Dre.vcl firm i,, fniladclphtn, l,,lo which (hc elder •J. [.Morgan went in 1871, will be completely rilsnfsoclntal from the Morgan firm 'Lifeline' Is in Their Hands Yin Community Owned Tracts Are Declared Profitable Investments People sny — I". :.;;.j-,-£j J. P, Morgan (right) and partners . . . Thomas w. MmioiU (left) and George Wlillney ... at a recent conference. The austere gray walls of the House of Morgan. Wall Street calls Ihifi "(lie corner.'' Dogs Sund Guard Af Un Death Memories of his master linger • for Rags. Los Angeles dog, as he keep? vigil outside a courtroom over clothes belonging to thc late Frederick J. Robinson. Court officials found they couldn't take the clothing for evidence in 550,000 suit over Robinson's death in traffic accident, unless dog came along too. much of a loll physically from youngsters who play it in high and prep schools." he said. "The speeding up of the garni', adds about six or seven minutes more of actual scrimmage. Those few minutes arc inconsequential, however, when Ihe physical wear and.tear on thc players is taken into consideration." Jourdct believes Ibat thc center jump, Instead of being a handicap to a team small in .stature, actually aids it because there arc opportunities for "stealing" the ball that do not exist in (lie gome as it Is now played. Read Courier News want nds. Professor Urges On "Blue Collar" Jobs STATE COLLEGE, Pa. <UP)_By teaching pupils that "blue .collar jobs arc just as honorable and socially worthy as white collar jobs," public schools ran forestall many unemployment problems, advises u. Penn Stole College professor. Dr. p. Theodore Struct:, head of Pctm Stale's department (if industrial education, points out that at present twice as many public school pupils desire to enter the professions and lec-hnical fields a.s llir.se vocations may reasonably be expected to absorb. Penn Mentor Says Restore Center Jump PHILADELPHIA (UPl-Lon •/onrdet, who has coached the Urt- versily of Pennsylvania to cig'hl taslcrn Intercollegiate titles in 15 years, believes that the basketball rules committee should return the center tap-oil to the game. Joiirdcl (cars thai secondary .school authorities, may rule against the sport. "The gome ns a i s played today is a running contest that lakes too J. L, GUARD Optometrist Only Oradu.itc Oplomc- Irisl in Filled Correctly IBOHE HOW $7 GAY & BIllIGS, Inc. V . • WASHINGTON (UP) laughed— no tho records when Ihe clly jolliers of i,. b Ion, N. H, decided In 1710 to pin- chase n "community forest"—110 acres from nn nnchnrlcd wilderness. Thiil was America's first community forest. It proved so success- fill thai since then hundreds of cities have pm-chased similar wooded tracts, They have been among tho most profitable Investments those cities liavo made. :' The NewlniUon forest has continuously served the coimmtnlty for 230 years. U luis supplied the 't'< "interims f 0r building the village church, the pnrsonago, town "...i, oci.uoi nnd library. From il has come timber for the building of bridges and fuel lo hent public buildings. Total i» u. s. 1,500 r^rMX'^ iifc '"•"»» - *w» *«« 1,500 community forests In the nn-j lion contain more thnn 3,000,000 acres. More limn 146.000,000 trees have been planted In these locally owned projects, the service said. President KooscvcH Is one of thc most ardent advocates of community forests. In tlm foreword of n recent Forest Service publication on community forests he snid lie i hoped their number would be in creased. "Community forests arc nn old and popularly accepted part of forest conservation," Mr. Roosevelt said. "They have helped for mail)' years lo reduce local luxes by yielding- profitable timber crops. "They IIHVC also provided other benefits, such us ivnlershed protection, outdoor recreation, shelter for birds ami beasts, and permanent Jobs through (lie sustained production of cordwood, posts, telephone poles, railroad ties, pulpwood, Chrlslmns trees nnd logs for lumber. Other Advantages Cited 'More of our communities, could profit economically, socially and spirilunJly by ownership niul operation of their own forests close at lome. Developments of such local oresls would be nn Importnnt step In the rebuilding of our national resources and would provide additional outdoor playgrounds' for the children of America." \ The largest community - oVncd- forcsl. in the UnHed States,' and probably in the world, is owned by the clly of Seattle, Wash., thc. Forest, service said. It has BC.380 acres of timborlaiid in a watershed from which the city has sold more than $1,000,000 worth of timber. : Income from thc Danville forest In New Hampshire has been placed In a trust fund which now idyls 59,316. The interest from the'trust and the forest have returned tho town approximately $4.45 per acre net peryearfor thepasl 100 years. Woman R.F.D. Carrier Finds Winters Warmer FLINT, Mich. (UP)—Persons who believe (hat winters are nol as cold and difficult now as formerly have a supporter In Mrs. Leah Webb, who has been a rural mall route carrier /or 21 years near Flint, Mrs. Webb recalls that when she first began |icr Job, delivery was by horse and buggy. Roads fre- quenlly were blocked and (ho task- was a hazardous ono, she says. Now, however, highways constantly are open and a heated automobile hns replaced the rig. One of the (joules with which she started the route died recently. Mrs. Wcbl), who obtained her job when rural routes were opened lo women during the World War, believes she is one of Ihe few remaining i n the country of (he original group. Restoration Work Due ,, On Perry'* FUfijiip irAHRisBuno, Pa. <upf— A, lo:ig-dlscussed project to jtslbre Commodore Oliver Hazard Perry's ilagihlp, N'iajara, to Its original condition finally Is under yay.'-lt wns, announced by the State Historic Commission. Tlio ship was brought up frorh tho bottom of Lake Eric 25 years ago and docked at Erie, Pa. • The project, to be hurried-out chiefly with Federal funtls, ptboably will-cnirfor rebuilding th? vessel on dry land where It would be placed on a permanent foundation, It was explained that- It' would' be loo expensive' lo keep the tilloal. ' ,™^»^> V>,, ttVi :r .^i-A i^'S ;**• t*ffti?i : , i s,T°pT}" ln r n T 1 *' f 130 "; IWOCltCC *"" " B "' '"''" 8 "" "' " "'"""B-jwicclM PWlttoi tilong mo' Sue, canal, l«'pt-,,n in.pcrtnnt sl ,o,, K 1,, Drnai,,* «i VeHlyf . (0 ni(Uft nw , th( , ^ -^ ^ In Near Knsl, troop conccntralion Micro nciirn one million, while Indications continuo that wnr may spread lo this locnlc. City of Fliul. Ends Wild Trip Even the< Ice-studded writers of Chc'i-npenkc Bay looked good to crew members of S. S. City of Flint rus steamer plowed Its way to <aic refuge in Baltimore. Arrival ended 113 harrowing days, which saw capture by Nazi battleship, Dculschiand, captivity in Russian port, seizure of German prize crew by Norway, snbseriuenl release of b6nt for homeward. Jd'urncy, collision with British steamer, Park To Mark Daniel Boone's Old Homestead READING, Pn, (UP) — The Na- llonnl Youth Administration and Etmc Historical Society arc cooperating In restoring uic o.iiiii. 1 ) Boone liomcMcntl near here as "a shrine to thc American Roy." • The ISO-acre site, part of a srint made by William i'eini to Boone's family, was acquired by the Commonwealth In 1937. It wns here Uuil D.inlel Boouc, whose exploits as lender of the Wilderness Scouts made him the Ideal of generations of school, boys, spent his chlidhoo:!. Ti)e project is divided into four general phases: ' rehabilitation of the grounds, construction of an NYA resident center, construction of a youth hostel, awl development of a park. • The hostel, to be built by youths employed by NYA,- will be constructed by hand-hewn -logs halt! together with wooden'pegs In (he frontier manner; It wl'll hnvc a large recreation and ." commons room In the center and two vdnys containing' sleeping quarters. TERM I NIX TERMINATES. TERMITES BRUCE-MEMPHIS Picture Address* Letter Reaches Right Destination OCSDES. Utah (UP)— Tho mail must go through— even though It lacks an address. To prove llmt nothing fenws united stiiles mull curriers, ll A Chirnur, directory clerk of Iliu OK- den posloffk'e, delivered n Jotter whoso only ndilrws was n norlrlll of (he liluli school girl for whom H was Inloinletl, When the IcUiM- arrived Onrner reasoned llmt Ihe picture, on the loiter was of u tih'l nbout high •school age. lie went lo school officials, who recognized, her r.iul called, her to receive II, The Letter wns for lols richllng of Oudou, nnd the creator' of Hie novel system of addressing was J. P. Hni licit, formerly of Ogden, but -now ntlcmllns school In Chicago. Miss Ilchllng E ald the sender must hnve mailed ll-llml way foi a Joke-he knows uiy ndtlvcss. 11 . The American flng NEWS! OLD QUAKER NOW 4 YEARS OLD 'AMERICA'S BIGGEST WHISKEY VALUE! EXTRA VMUf IN EVIRV BOTTU rou eui Phone ARKANSAS & MISSOURI Farm & City LOAN LOW INTEREST RATES EASY PAYMENTS-LONG TERMS Fastest clnsinff service of any mortgage loan company doing business in this slate. FLORIDA BROS. & GO. Life Insurance Investment Securities Osccola, Ark. Fire Insurance hours n day, rnln or nhlric, mid , replaced every six weeks because Only Coca-Cola gives you the refreshed feeling that people the world over welcome. Pure, wholesome, delicious,-Coca-Cola belongs in your refrigerator at home. And the convenient way to get it there is in the handy six-bottle carton. UOTTiro UNDER AUTHORITY OF THE COCA-COLA CO. BV Phone 366 COCA-COLA BOTTLING COMPANY